Daily Brief, June 11 – Economic Events Outlook, UK's Labor Figures on the Radar – Forex News by FX Leaders

Good morning, traders.

On Tuesday, the demand for Greenback is steady mainly against other major forex currencies; however, traders’ appetite for risk is kept in check after US President Donald Trump renewed his tariff threats towards China.

Risk-off Sentiment Plays

The investors’ appetite for risk remained subdued as the market waits for confirmation of a possible meeting between Trump and ‘China’s President at the G20 summit near the end of the month. By the way, Trump recently threatened Chinese President with further tariffs if he fails to attend G20 summit. The summit is due to be held on 28–29 June 2019 in Osaka.

Key Economic Events Today

UK Labor Market Report – 8:30 GMT

Average Earnings Index 3m/y
It’s a leading indicator of consumer inflation and shows a change in price for businesses and the government pay for labor, including bonuses. When businesses pay more for labor, the higher costs are usually passed on to the consumer, which leads to inflation.

The UK’s Office for National Statistics reported 3.2% average earnings in May, whereas, economists are expecting it to drop to 2.2% this month.

Claimant Count Change
It’s one of the most eyed economic data as it shows a change in the number of people claiming unemployment-related benefits during the previous month.

The Claimant Count Change for May revealed an extension of 24.7k, but May’s figures seem to get better as economists are expecting jobless claims of 12.3k, which is way lower than 24.7k. It means that less number of people have claimed to be unemployed, which may also improve the unemployment rate and, ultimately, the British Pound.

Unemployment Rate
The Unemployment Rate isn’t expected to change from 3.8%; however, any deviation is going give us breakouts to trade.

US Core PPI m/m – 12:30 GMT

The Producer Price Index (PPI) shows a change in the price of finished goods and services sold by producers, excluding food and energy. Economists are expecting a slight rise in figures from 0.1% to 0.2%.

Conversely, the PPI m/m is expected to drop from 0.2% to 0.1%. In short, both forecasts are opposite to each other and may not drive trends in the US Dollar until the release of actual figures.

Good luck, fellas. See you again with the technical setups as the market is offering quite a few trades lately.

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